National Policy Alexander Mackenzie

Achievements: • Formed the first Liberal administration of the Dominion of Canada 1873 • Secret Ballot 1874 • Founding of Royal Military College 1874 • Creation of Supreme Court of Canada1875 • Creation of the Office of the Auditor General 1878 • Leader of the Opposition 1878 - 1880 Sandford Fleming

• Surveyor for the CPR • Sets Standard Time for North America

Alexander Mackenzie PM: 1873-78

Speech From the Throne

“She’s long enough, ain’t she, Johnny?”

“Aye, aye. All length and no breadth, like a tapeworm!”

“Never mind, she’ll go down nicely all the same.” MacDonald Returns in 1878

• 1876 begins his National Policy campaign

Canada in the late 1870s

• Recession – Americans were undercutting Canadian businesses • MacKenzie delays building the CPR to link BC • America passed the Canada Annexation Act 1866

MACDONALD’S NATIONAL POLICY 1) Macdonald Raises Tariffs

From 15% to 17.5 - 35%!! 1878 John A. Macdonald on the Formation of the National Policy “... The resolution speaks not only of a reasonable adjustment of the tariff but of the encouragement and development of interprovincial trade. That is one of the great objects we should seek to attain. Formerly, we were a number of Provinces which had very little trade with each other, and very little connection, except a common allegiance to a common Sovereign, and it is of the greatest importance that we should be allied together. I believe that, by a fair readjustment of the tariff, we can increase the various industries which we can interchange one with another, and make this union a union in interest, a union in trade, and a union in feeling. We shall then grow up rapidly a good, steady and mature trade between the Provinces, rendering us independent of foreign trade, and not, as New Brunswick and Nova Scotia formerly did, look to the United States or to England for trade, but look to Ontario and Quebec, -- sending their products west, and receiving the products of Quebec and Ontario in exchange.” Impact of National Policy Tariffs

Positive • Protects Infant Canadian Industry • Protects Jobs in Canada • Helps create new Industry • Transfers technology to Canada • Keeps Canadians in the country • Raises revenue for the government • Helps create East-West/national economy Impact of National Policy Tariffs

Negative • Beginning of branch-plant economy = American control • Industry is restricted to our national market = small – Not enough jobs created – emigration continues • Industry is uncompetitive, weak – must continue to protect it • Regional and class bias; profits central Canada and the industrial class • Higher prices in the East and West for Central Canada’s manufactured goods • Frequent corruption associated with the tariffs • Increases the cost of living, decreases the standard of living 2) Settling the West Dominion Lands Act 1872

• Free land to those who would pay $10 registration fee (160 acres) – Not the best land – Best land reserved for the CPR • Free if you settle and develop the land – Clear it, farm it, settle it for at least 3 years

• Create an agricultural settlement to purchase manufactured goods from Central Canada • Protect from American annexation

Source: The Canadian Pacific Railway traversing the great wheat region of the Canadian northwest. New York: American Bank Note Co., [ca. 1883]. Ref. No.: NMC 011868. http://www.collectionscanada.ca/maps/4_0_gov/0514040401_e.html 3) Canadian Pacific Railway The CPR Syndicate

• Hugh Allan was cut from the CPR when Mackenzie took over • Incorporated February 16th, 1881 • Syndicate received: – $25 million dollars – 25 million acres of land around the railway – Monopoly over transportation to the US for 20 years • Railway had to be complete within 10 years. George Stephen • Born in England 1829 • Moved to Canada in 1850 • Gets wealthy off of developing railways • President of the Bank of Montreal 1876-1881 • Moves back to England 1888 Donald Smith • Born in Scotland 1820 • Becomes chief commissioner of HBC in 1870 • Helped negotiate Manitoba’s entry into confederation • Didn’t support MacDonald in the Pacific Scandal James Jerome Hill • Born in Upper Canada 1838 • Moved to the US to find a job • Gets rich off of Coal trading • Gets into the CPR because it would increase his trade in Minneapolis James Hill’s House St Paul’s, Minneapolis William Van Horne

• Construction of the CPR is moving too slowly so Van Horne is hired to manage the project and speed it up (1882) • Connected Winnipeg to Calgary by 1883!

Andrew Onderdonk

• Responsible for the CPR from Port Moody to Savona (near Kamloops) 1880 • Contracted to continue to Eagle Pass and runs out of money in 1885

1881 Lower Fraser Valley 1882 Logging Train Carrying Rail Ties CPR Money troubles

• 1883 the Syndicate had used most of its money to build the railway in the Prairies • Government only paid the CPR upon completion of sections • Government passes a bill to front $22.5 million to the CPR • CPR passes Kicking Horse Pass(instead of Yellowhead Pass) 1883 – Would move the line through more fertile belts in the prairies – Closer to the US Kicking Horse Pass 1890 Last Spike (Eagle Pass BC - Craigellachie) • November 7, 1885 the two lines meet

Donald Smith Drives in the Last Spike

Who don’t you see??

First train from Montreal arriving in Vancouver July of 1886 CPR Station and Docks Vancouver 1888